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Montana Woolen Products has two divisions: a Fabri...




Montana Woolen Products has two divisions: a Fabric division that manufactures woolen fabrics, and a Clothing division that manufactures woolen dresses, coats, shirts, and accessories. All fabric used by the Clothing division is supplied by the Fabric division, which also supplies fabric to outside companies. What transfer price would you choose for the fabric assuming that the Fabric division is operating at only 60 percent of capacity due to a surge in popularity of ?easy-care? fabrics made of polyester and rayon and why? MARKET PRICE AS THE TRANSFER PRICE MARKET PRICE AND OPPORTUNITY COST VARIABLE COST AS THE TRANSFER PRICE FULL COST PLUS PROFIT AS THE TRANSFER PRICE NEGOTIATED TRANSFER PRICES,Any luck with this one?,I've read each transfer price. Would it be market and opportunity?,Any luck?


Paper#6625 | Written in 18-Jul-2015

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